Did you know that a $10,000 investment with GN Store Nord (the Danish company that owns the Beltone hearing aid product line) three years after their acquisition of Beltone in 2000, would have yielded you a profit of $30,000?
Or what about Phonak, a hearing aid and assistive technology company, that saw its stock price rise nearly 600% since January 2003? A $10,000 investment there would’ve made you about $43,000 richer. And a $10,000 Siemens investment would have netted you about $9,000 in profit.
Jaguar, anyone?
But what about the cochlear implant companies? A $10,000 investment with Cochlear, an Australian company, in January 2003, would be worth 144% more today. And one would’ve lost money had he or she invested in Boston Scientific, owner of Advanced Bionics, another CI maker, at the time of acquisition in January 2004. A $10,000 investment then would leave you hanging dry today with about only $5,000.
In summary, this would be what your portfolio would look like had you made the above stock picks:
| Company | Date | Initial Investment | Est. Current Value |
| Cochlear | 01/03 | $10,000 | $14,400 |
| Phonak | 01/03 | $10,000 | $53,600 |
| Siemens | 01/03 | $10,000 | $19,400 |
| GN Store Nord | 01/03 | $10,000 | $39,800 |
| Boston Scientific | 01/04 | $10,000 | $5,600 |
| Total: | $132,800 | ||
| Cost Basis: | $50,000 | ||
| Gain: | $82,800 | ||
| Change: | |||
According to a Goldman Sachs analyst who wears a CI, “Due to the popularity of the CI, it is possible that CI manufacturers are getting the attention of larger health care companies and as a result, are becoming prime acquisition targets.”
Needless to say, the CI business, overall, is good–but the question we need to ask–is this business sustainable? From a product life cycle point of view, could it be that the CI is at its peak?
Could investors be cashing out their CI stock portfolios and be waiting on the sidelines for the next big thing? At the time of writing, some of the above companies were already taking a hit.
Who knows. But perhaps they’re like me and waiting to see who reaches the finish line first with the first “totally implantable cochlear implant” (TICI) that’s expected to come onto the market. Christine Writer, of Cochlear, Ltd., the CI market leader, has confirmed that the TICI is among its current R&D efforts. The University of Miami’s Cochlear Implant Team is among several other groups claiming to be working on this next-generation CI.
Will deaf, hard-of-hearing and especially late-deafened people be rushing to their audiologists once this invisible implant arrives on the shelves ? Is this a subset of the deaf community that would realize that they no longer would need to worry about being stared at on Metro nor would they be ever subject to Borg-like, “what’s that on your head” or god forbid, “You’re no longer deaf enough!” comments upon discovery of the CI.
Anyway, perhaps its one of these companies above that’ll win this race and be able to capitalize on the vanity of deaf and hard of hearing Americans. Perhaps it’ll be a fledgling company.
And if you’re wondering–would I ever get one? I’m undecided if not indifferent to the idea.
Robert Rice is not a financial advisor nor does he own any shares in the companies mentioned in this blog. No content published on this blog constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. To the extent any of the content published on this blog may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.
© Copyrighted material. This article cannot be copied, reproduced or redistributed without the express written consent of the author. As with every blog on this website, this blog does not reflect the opinion of DeafDC.com.
65 Comments
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Oh.. I should make note of that to financial advisor. The only problem is I need to understand stocks a little, er make that a lot better (it really goes over my head).
Stocks are easy. Pick a few companies that you like and that you think will do well in the long run, and buy some shares from those companies. Hold onto those shares for several years and watch your overall value grow (hopefully). That’s all there is to it.
It’s not that simple. A lot of people “liked” Enron and MCI at one time and they collectively got burned if not massacred.
In my opinion, if one doesn’t know the basics of investing, he or she should stick to mutual funds or bring in the professionals.
And oh yeah, diversify!
We, culturally deaf individuals ought to put the manfacturers of CIs out of business, not investing in them!!
Why would we, culturally deaf and other victims of CIs, ought to embrace the technology (CIs) to dehumanize our own existence?
More to life than perecting ourselves for the sake of society at large, ex. conformity and societal acceptance!!
Down with the CIs for the invasive surgery into our poor pre-college youngsters! The state Medicaid agencies ought not to spend alot of $$$ on the CI surgeries on our precious resources - deaf youngsters. The state governments would do the superbu investment in deaf education like buying new thousandths of books or ASLize the deaf education from $60K supplement than just one individual to be borgized!
Technology surely dehumanizes our existence as human beings in many way! Have you read the “Language of Oppression” and “Technoply”??
Why can’t we be grateful for who and what we are borne into this world? The kadilescope of human diversity could not taken for granted or our human life will be so boring!!
Robert L. Mason (RLM)
Strange. As a CI user for the past four years, I don’t feel that my existence has been dehumanized.
I had meniere’s syndrome (vertigo) and was implanted with a bilateral. No more dizziness and I do not preach or encourage Deaf people to get a CI. If they want to know how it is and I would share the experience. I still use ASL also speak when I am around hearing folks.I have the best of both worlds and I educate the hearing population about deafness,
D/deaf people can either use the best technology available to them or not. No point arguing about “why” they got the CI’s. Life is short and I will do everything I can to experience whatever is available.
Technology is grand and I am still in awe that a brain can hear with the CI.
Hmmm…unity for whom? Again.
RLM, I’m with you on saying we should be grateful for who we are. But if people are implanted, either by their own choice or by their parents’, then their new “state of being” with the CI becomes yet another aspect of diversity, wouldn’t you say?
After all, like Mr. Stone, and a couple of other people at DeafDC who have CI’s, they’re still very much D/deaf and happy to be that way. So, yeah, the CI companies got their money, and the CI users still seem to have their humanity and individuality.
By that same logic, if you are born in this world with a missing leg, NO PROSTHETICS FOR YOU! Crawl on the floor! Absurd.
I’m not sure if this logic applies. A person with one leg isn’t born into a culture complete with a unique language, etc. like many who are deaf.
I think it does…
The culture exists as a means to allow Deaf people to thrive despite their lack of hearing. If they had hearing, there would be no need for the underlying culture protecting them. Why would it be so bad if Deaf culture were obliterated because there were no more deaf people?
While I see the value in the culture allowing people to deal with their disabilities or other problems, I don’t think the culture is itself a valid justification the continued existence of the underlying problem.
If we had a way to perfectly provide hearing to all children born deaf, why shouldn’t we do it? What advantage is there to the world, or to the children in question, in going through a life without hearing?
Agreed; I think you nail it here. There’s a disability. If you want to alleviate it, it shouldn’t be a reflection of you but a simple desire to alleviate a disability. But like with anything, when you change the characteristic that includes you in a certain cultural group, you have to be prepared for some backlash and potential repercussions. If I were to get a CI tomorrow, I would expect that some in the Deaf community would be upset with me, while others would be supportive.
Deaf culture is not about the ears/hear part but its about the person within who incoporate the values that a group believes.
RLM: if technology dehumanizes you, I’d suggest logging off this evil blog, this artifact of technology. ;-)
I’ve never really noticed anyone staring at me on the Metro because I have a black thing stuck to the side of my head. I’ve been asked about it before…most people seem to think it’s a Bluetooth device. That’s just fine with me! :) More and more people have things stuck to their ears/heads these days. Maybe it’s just me, but it doesn’t feel any more awkward than wearing a hearing aid.
Maybe you’re used to it or just comfortable with it or, as you say, people around us are getting used to living very intimately with technology. But Rob’s comment is valid - I know at least one other girlfriend who won’t wear her hair up because she hates displaying, as she put it, “wires hanging off her head.”
I guess what I really was trying to say was that cosmetic concerns shouldn’t be a big factor in helping people decide whether to get a CI or not (or even waiting until the TICI) because…once you have it, you realize it’s really not a big deal. It’s just a small step over wearing hearing aids.
Again, that’s just me. Some people, like your friend, wouldn’t be caught dead wearing a wire stuck to his or her head in public.
Would this “public” be the Deaf public?
Honestly, flame me all you want, if folks want CI, fine, I have no interest in them…but, Adam, for me as a sort-of-high maintenance Southern lady, it’s not the wires per se that draws my attention, but the real noticeable “C” scar. The shorter the hair, the more blantant it stands out. Ok, there I said it, flame away.
Ah! Docs don’t do that huge half-moon scar anymore. Almost all surgeries now make a far smaller incision behind the ear lobe (where it would be covered by the CI itself). Some surgeons make bigger incisions than others, though.
My scar is barely noticeable. I have to point at it so other people can see it.
Ah, that’s good! Thanks for not flamin’ on me (big grin!)
I LoLed at your little disclaimer Rob.
And I also went into my famous Conspiracy Theory mode. My insurance company will only pay for up to $1400 worth of hearing aids every 36 months for people under 21, but a $10,000 cochlear implant is completely covered for anybody of any age.
Me doth thinks the powers that be at my insurance company got or generated this stock tip long before you ever began to type your blog, Rob.
Sheesh. Love makes the world go around, maybe, but its axis is built of money.
Bilateral implants for me cost over 100K. Federal Blue Shield and Blue Cross insurance paid 100%. I was shocked about the cost. It includes therapy, mapping, 2 processors for each ear (total of four processors) and surgery for both ears. The cochlear implant center wrote justification letter to the insurance company on medical necessity and not on quality of life issues.
I would be interested in knowing what makes the CI and not the hearing aid - a “medical necessity.”
Thats a very good question. I believe it boils down to economics. Not many people in the hearing loss population has a CI; nevertheless, a hearing aid would bankrupt the insurance company. I know it is silly that insurance will not cover hearing aids unless you convince the insurance company that a hearing aid is needed for environmental safety or medical reasons.
Profits among cochlear implant companies are usually in the 10 to 30 million dollars. One cochlear implant company in Australia earned 27 million dollars in 2002. This is quite low according to many of the investors’ expectation of seeing double amount. Earning projections were usually sometimes at twice what was earned a year earlier or even previous years. Despite the numerous analyses on the potential market of 1.8 million “viable” deaf people with profound and severe hearing loss that could benefit from cochlear implants, cochlear implant companies have so far only produced 61,000+ devices. (Clegg). This produces to date with only a 3.4 percent cumulative market penetration. (Clegg “Investors ignore message from Cochlear.” May 2003. The Australian Financial Review.)
Currently cochlear implant industries are eyeing China where 35,000 children are born deaf each year. One company is making plans to increase its market penetration from 12,000 cochlear implant devices a year to 75,000.
Also, here is an ongoing poll of GU students whether they support the Cochlear Implant Education Center at Gallaudet or not.
http://kokonutpundits.blogspot.....audet.html
sorry…can’t get tinyurl for the moment
There are also the baby-boomers market who are progressively losing their hearing.
There’s also the I-pod generation whose teenagers are blasting music into their fragile ears.
There’s also a sudden interest in having dual implants for that surround-sound effect.
And like McConnell says, the global market is just yet to be broached.
More information about this interesting discussion can be read here at http://www.businessweek.com/ma.....959101.htm
Resistence is futile.
Ok. Couldn’t help make that comment.
Umm, is this comment addressed to those considering the CI or to a certain few at Gallaudet? :)
I loved that disclaimer of yours, Rob!
I would love to have a CI, but at this point in time, I consider the technology to not be quite there to replace the aids I’m wearing right now. Oh, I am not saying that they’re not better (they are!). I’m referring more to the minaturization efforts undergoing right now. To me, they’re not small enough, especially the external devices. Reliability is also a big key here — my digital aids are breaking down far more often than my old analogs. *grrrr*
Being a part of the deaf culture does not exclude a person’s desire to be able to hear at least something. After all, once you fall in love with hearing the subtle tones with music, it is hard to turn away from that. Life is not all about pumping up the bass all the time.
So, the new mantra should be “Deaf people can do anything, even hear.” ?
hahahaha. “We COULD hear… We just won’t listen.”
How true that can be. :P
I have never thought of that and that is a good one.
Having a hearing son tends to mellow you out about the likelihood of cochlear implants that you so fervently rejected in your 20s. That and the march of progress in technology tends to make me reconsider the possibility.
Yes, I was pretty much anti-CI in my 20s, mainly because I had met peers who had CIs and it didn’t work for them. One of them even said that he passed a speechreading test better when he took them off. I think it’s all about the individual, what works for them. I’m profoundly deaf, hearing aids were more of an annoyance than a boon. People don’t miss what they don’t remember, I don’t remember what it’s like to hear music after I became deaf at 2, so I feel no motivation to go through surgery to hear stuff. To each, their own.
And the ironic thing about technology, it has helped deaf/hh people become even more independent than ever before. This wasn’t the case as early as seven years ago. And yet another communication device has come to fruition that many deaf people, businesses and such are already clamoring for. You’ll see alot more of this wonderful communication device developed by a deaf person!!
http://kokonutpundits.blogspot.....biduo.html
I looked at the UbiDuo thing on your site, mcconnel. What’s the point of using that when people could just as easily type back and forth on a laptop, IM, text pager, or paper?
Either email me and discuss it or use the comment box on my blog. Don’t want to make this into an “off-topic” discussion. :)
I already pointed out to the absurdity of normalizing our PRE-COLLEGE deaf youngsters with the CI surgeries thru the hard-earned taxpayer subsidies. Alot of well-off parents of deaf children take advantage of the state Medicaid coverage. Why should those financally well parents let hard-earned taxpayers to pay for the so-called luxury item.
The CI surgery is not really a necessity. Being deaf is not a “life and death” matter!!
The real difference between the use of leg prostethics/wearable hearing aids and INVASIVE CI surgery, Bobby Cox!! People could take off the leg protesthic or hearing aids, not CI!!!
I do not object to anyone over 21 years (legal age in many states) pay for hir own goddamn CI surgery out of pocket! Not the health insurance or taxpayer-subsidy health insurance (Medicaid and tax-exempt charitable organizations) pay for the CI surgery on PRE-COLLEGE (before the adulthood) deaf youngsters.
Parents ought not to accessorize or decoratize their human offsprings with man-made technology like the non-necessity CI surgery. Being deaf is a true blessing which our Creator intended for our own destinty.
I hope that we will have the longtitude study of “borgized” deaf youngsters’ psychological makeover as compared to non-CI users.
Why should parents have the right to alter hir offspring to suit their own personal preference?
Have anyone read “Brave New World” book or “Logan Run” 70s movie about the overzealous creation of human utopia??
I would be not really surprised that someone with CI will be more likely to be subjected to the electromagentic (EMG) frequency if the enemy decide to impose upon our country.
We must not let technology to dehumanize our existence like putting the GPS into our bodies or insert the readable security system into our eyes or somewhere in our human bodies.
Deaf youngsters ought to be free from the artifical “social” engineering to be totally accepted into the society at large. Parents of deaf children ought to embrace the existence of human physique flaws.
What good for having the CI nowaday if technology is not really precious, ex.limited channels???
Humans nowaday lost our soul everyday like the letter-writing “lost art” and other things!
Robert L. Mason (RLM)
I hear you, (no pun intended)- we do have to take into consideration medical ethics to prevent being overzealous with technology- like the ethics of face transplants and cloning! Your point is that if someone wants CI for their child, our tax money shouldn’t be going to cover it? I understand that. Insurance willing to pay for CIs while not covering for hearing aids- makes no sense either. I don’t know what else to say, this is a very complicated issue. But from what I’m reading, CI users aren’t saying they’re doing away with Deaf culture, so I think, soul-wise, we’ll be fine.
A choice of being deaf or not, is just exactly that — a choice. Some people are comfortable with it, and others aren’t. I see no reason to force others to remain deaf by refusing to fund CIs. If they want to compete in the whole wide world by obtaining CIs, let them do so by all means. If the government subsidizes many other things to make life easy for its citizens, especially the disabled, then, by all means, obtain a CI.
“borgized” Do you have some mental disability? Why do you fear technology? I am one of those parents who “alter” there child. The CI has nothing to do with social engineering or personal preference. When my child was small she would cry when she had to take the CI off. She still loves it and is her choice to use it. Are you such a nut that you actually believe that EMG junk and Sci-Fi crap you are talking about? You said your creator meant for you to be this way, so we should not fly as we where not given wings. What about heart transplants? Health insurance is bought and paid for by the consumer for just this type of need, are you so self absorbed in your on beliefs that you would rather people suffer than get the treatment they want because you disagree with a certain treatment? Also you talk how it a waste of money well lets say you spend 60k providing asl training to the child and his parents then a interpreter is required all of this will cost taxpayers alot more than 60k so with that said following your own logic CI should be forced on all eligible candidates, this would save a lot of money instead of teaching a language a few known. I think as a taxpayer and a consumer I deserve all treatment options available, and so do you.
Meh. Nice ad hoc financial analysis. The real money is to be made in preventive medicine, though!
If a company could create a so-called ‘deaf vaccine’ and the medicial community uses it en masse like other vaccines, there’s gold in them vials! If some company could come up with celluar-level solutions to hearing loss, that’s another revenue stream. Lastly, if some company deciphers the ‘Deaf gene’ and is eliminated altogether, they stand to be richly rewarded.
If any of these approaches come to fruition and wide usage, Gallaudet might as well as shutter its doors and become just another departmental unit of say, Howard University. Or, they could be an extension of the Smithsonian, where anthropoligists study us, the fast dwindling culture in real time. :(
Given these choices, I’d rather invest in CI companies! :) By large, CI people still opt for learning ASL and using it in their daily lives. But, I hold no illusions for the future and what newer technological improvements that may spring forth.
Yeah, I agree with you on this point. The problem is that there is no single deaf gene. There are many, many causes… Scientists are not even able to identify all of them. It’s going to take a while but, yes, the future is promising.
As for your last remark, I agree.. and I would like to add that CIs, ASL and Spoken English can go together. There is nothing wrong with kids who truly are both bilingual and bimodal. I read some articles of studies who concluded that KODAs are generally more intelligent due to their bimodality and bilingualism. What’s so wrong about having deaf kids do that as well?
The deaf community must face, and eventually accept, the changes caused by advancements in technology. To do otherwise is extremely futile. But, that does not necessarily mean the obliteration of American Sign Language, and I am completely for the preservation of it.
Another opportunity is that erectile dysfunction is becoming so common and penile implants may be the next financial wave after Viagra does not work for most people. Eye transplants are on its way now even nerve stimulator for paralyzed people. Ten years from now you can go to a body shop and get your body parts repaired.
The Body Shop already exists. They just choose to sell shampoo and perfume. Give them some time…
Body shop, eh? Never thought that my fav 70’s show “Bionic Woman” would have become a reachable prospect 10 years from now. Hmm..me wonder the effects of slow-motion high height leaping have on internal organs…can the brain register distance of target when running at 200 mph? Hmm…*looking for Jaime Sommers’ contact info*
Body shop, eh? Never thought I’d see my fav 70s show “The Bionic Woman” become a reality in 10 years. I wonder about the effects of slow-motion high-heights leaping has on internal organs…whether the brain can gauge distance of intended target while running at 200 mph…will bad men survive a light fling of my arm…hmm…*looking for Jaime Sommers’ contact info*
Rob, answer these questions (and anyone else can pitch in):
How much do CI or hearing aid companies spend to reinvest in the community?
How many deaf and hard of hearing employees do CI or hearing aid companies hire (other than the deaf token at tradeshows and Donna Sorkin)?
Some relay companies have a track record of re-investing in the same community that uses their products and services. For example, Sorenson and CSD have sponsored Deaflympics (which probably have hearing aid and CI fans and competitors):
http://www.sorenson.com/deaflympics/index.php
http://2007winterdeaflympics.c-s-d.org/
(Granted Widex is a sponsor of the Deaflympics)
Perhaps relay companies make a point of making their contributions visible. Should CI and hearing aid companies do the same? For example, while Sorenson and CSD have the Deaflympics logo on their homepage, none can be found on the Widex homepage at:
http://www.widex.com
Do CI and hearing aid companies share the same concern for the welfare of our community? These companies depend entirely on the existence of our community to earn a profit for their shareholders. Do they have a social responsibility to give back to the same community from which they make money?
Perhaps we should invest in their stock to get returns for using their products?
In a follow up to my post, look at the right side of DeafDC.com. We can see our typical relay sponsors, but where are the CI and hearing aid sponsors? Have you approached them about sponsorship? If so, what was their response?
This reminds me of the time when some of the Congress members asked oil companies about earmarking some of their earnings to “help the poor who could not pay their heating bills”. Do those Big Five have societal obligations as well?
I think that the oil companies have some societal obligations, yes, but there are many, especially in the White House and Congress, that will argue that corporations are under no necessity to provide for societal needs.
What I believe is that corporations should be required to contribute just as much as everyone else because they do benefit from social stability as well as legal stability. But, hey, that’s just me….
Jt’s husband: Yes, the cochlear implants companies do support the deaf/hoh communities. They’ve made a lot of donations to AGB among other organizations. Also, I am aware of someone who has a son (who has a CI) who attends a private school for children with listening and speech problems, and the tuition, which is in the low 30Ks, is completely paid for by one of the cochlear implant companies.
Yes, there is a lot of community support, but I am afraid it isn’t for the Deaf community with the examples you mentioned above. After all, why should they? It wasn’t only until recent when the NAD had its about-face on the issue of CIs.
That’s completely a marketing strategy on their part- sponsoring organizations likely to further their profits.
NAD issued its revised position statement regarding CIs… in 2000. To me, that’s not “recent”.
Inasmuch as donations by Sorenson/CSD donations are completely marketing strategies on their parts. Not that there’s anything wrong with that.
But to fault them for ‘not supporting the community’ is a tad bit misplaced.
Ok, I stand corrected. ‘It wasn’t a while ago’ is probably what I meant.
Jt, it is a marketing strategy, if not a public relations strategy for most companies when they sponsor an event or help a deaf child attend private school.
Flying duck, as I pointed out before perhaps CI and hearing aid companies do not promote their contributions to the community as well as relay companies do?
Since you may have intimate knowledge of CI and hearing aid companies, do you know if they employ a significant number of deaf and hard of hearing people?
And finally, I want Adam Stone and Rob Rice to know that I would prefer to see a DeafDC.com comment system similar to RITVAX where we know the names of the people that we have discussions with. Flying Duck, if you would like to continue this great discussion via email, please email me. If you do not know my email, please contact me through my wife’s DeafDC.com email.
Sorensen/CSD may be taking it a step further by hiring deaf employees as VRS installers and even on the administrative level. It’s easy for the community to name positive acts that these companies have done in name of social justice- and they have spread their efforts across the “hearing/deaf diversity” spectrum.
Or maybe it is easier for you, as a person who is in the Deaf community, to recognize the acts of ’social justice’ because they affect you directly. You may not be aware of the acts of ’social justice’ the cochlear companies make because they do not affect you at all.
But, yes, it is a good question regarding deaf employees in those companies. But, do you mean you prefer to see ASL users working there, or just those deaf/hoh, regardless of their signing ability?
Regardless of signing ability. When other minority communities push businesses and other employers to hire more diverse people in the workforce, the community does not specify which kind of person (tone of color, culture, tribe, etc.) The same should kind of effort should be pushed for CI and hearing aid companies, assuming that they do not have a sufficent number of deaf and hard of hearing employees.
FlyingDuck, you wrote: You may not be aware of the acts of ’social justice’ the cochlear companies make because they do not affect you at all.
I disagree. I do not know anybody else, except Tracy, who has had the Cochlear Implant as long as I did. I received it in June of 1980. I was the first preschooler (born deaf) to receive it, and Tracy was the first preschooler (born hearing) to receive it (a few months earlier). Even though I now communicate in ASL, I have used the CI for many more years than most of the people I see using it nowadays. I have watched the Cochlear company evolve over the past two decades. Based on this, I am in a good position to veer over both sides of the fence, and can definitely tell you that Cochlear, despites its benevolent intentions, is nowadays more focused on the bottom line.
I am simply making this judgement- and in respond to those who may errorenously assume, I am fully in support of CIs being used as an assistive technology.
That’s interesting! Yes, the bottom line is the green bucks. I have a question- based on your experiences or observations, why do you think CI doesn’t work on some people who received them? Why do I have friends my age (30s) who had CI and no longer use it because it doesn’t do much for them? Just curious.
Nice article, but I see math isn’t one of your strong points. Phonak would give you a 430% gain, not 600%. Cochlear gets you 44% ahead, not 144%. Overall, your portfolio would make you 166% richer, not 266% (132,800 - 50,000)/50,000.
Whoops. Good catch. Have corrected the blog to reflect the error. Thank you!
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